Air Insulated Transformer Market Size - By Winding, By Rating, By Application, Analysis, Share, Growth Forecast, 2025 - 2034

Air Insulated Transformer Market Size

The global air insulated transformer market was estimated at USD 4.9 billion in 2024. The market is expected to grow from USD 5.3 billion in 2025 to USD 8.6 billion in 2034, at a CAGR of 5.5%. Various elements such as the depth of operations, network features, customer base, and ownership structures influence the extent to which the global electricity industry can subsequently offer business opportunities. For reference, the International Energy Agency (IEA) claims that global electricity consumption is expected to rise due to standard increases in demand and economic development in developing economies which will result in a yearly growth of roughly 3% until 2030.
 

Tariff and revenue assessment models account for this diversity, enabling meaningful comparisons across regions. Despite these variations, Distribution System Operators (DSOs) and Transmission System Operators (TSOs) maintain high standards of service quality and reliability. For illustration, as per the U.S. Energy Information Administration (EIA), the average electricity reliability in the United States, measured by the System Average Interruption Duration Index (SAIDI), was approximately 2 hours in 2022, reflecting the industry's focus on minimizing outages and ensuring consistent service delivery.
 

While solar, wind, and hydro sources of energy are being harnessed, integrating these forms of energy into the primary grid most often requires the existing infrastructure to be modified. The efforts made towards the accomplishment of this goal are aided by AITs. For instance, the IEA states that there is an expected increase of 1000GW in renewable energy capacity from 2024 until 2028 owing to government spending and technological improvements continually driving growth.
 

Numerous nations are modernizing their electrical grids to improve their reliability, support integration of renewables, and serve greater demand. Because of their cost efficiency and effectiveness, air insulated transformers are essential to cost effective modernization. For instance, the US department of energy states that repositioning the grid infrastructure to accept alternate energy sources has become a primary concern, estimating that more than USD 13 billion dollars will be spent on grid upgrades due to the infrastructure investment and jobs act.
 

Air Insulated Transformer Market Trends

In certain markets, where funds are limited, AITs are a convincing replacement over the other transformer types as AITs offer a much lower startup capital cost. For the cost-sensitive utilities, these air-insulated design transformers become the obvious option. As a result of lacking insulating aides such as oil and gas, these AITs are permitting far lower operational costs as they need far less maintenance.
 

Sustainable and eco-friendly practices in power distribution AITs is made easier with the or oil-filled and gas-insulated transformers. For illustration, AITS, or advanced integrated transformers, are expected to reduce greenhouse gases by 40% when compared to highly regenerative systems. The US Department of Energy cited this example.
 

Insulation technology, materials, and design innovation all add to the performance and efficiency of air-insulated transformers making them more cost effective. Advanced dielectric materials enable the construction of smaller more efficient transformers. AITs have enhanced in size and modularity due to technological progress making them more appropriate for urban spaces where there are restrictions regarding the area of installation.
 

Air Insulated Transformer Market Analysis

• The global air insulated transformer market was valued at USD 4.3 billion, USD 4.6 billion, and USD 4.9 billion in 2022, 2023, and 2024, respectively. Based on winding, the industry can be categorized into two winding and auto transformer.
   
• Two winding segment is expected to dominate the market and exceed revenue of USD 4.4 billion by 2034. Two-winding air-insulated transformers have a relatively lower upfront cost compared to other transformer types, such as gas-insulated or oil-immersed transformers. This makes them highly attractive for utilities and industries, particularly in markets where cost considerations are significant. With fewer parts subject to wear or failure, these transformers offer increased reliability, reducing the risk of outages and improving grid stability.
   
• Auto transformers are highly efficient in voltage conversion, especially when stepping down voltage, as they only use part of the primary winding for the secondary circuit. This reduces losses and makes them an ideal choice for applications requiring higher efficiency, such as in industrial processes and renewable energy systems. As industries and infrastructure move toward greater electrification, auto transformers are being used to efficiently handle the power conversion needed in processes such as electric motor control, variable-speed drives, and industrial machinery.
   

• Based on the rating, the air insulated transformer market is trifurcated into ≤ 10 MVA, > 10 MVA to ≤ 100 MVA, > 100 MVA to ≤ 600 MVA and > 600 MVA. The > 600 MVA segment is set to lead the industry with major market share of over 15.4% in 2024 while growing at a positive CAGR through 2034.
   
• Smaller air-insulated transformers (≤ 10 MVA) are commonly used in rural and remote areas where electricity needs to be stepped down from higher transmission voltages to levels suitable for residential or small industrial applications. The ongoing push for rural electrification in emerging economies and the upgrading of local distribution networks support the demand for transformers in this range.
   
• The increasing trend toward smart grids, where electrical systems are more automated and capable of handling varying loads, requires transformers that can provide efficient and stable voltage regulation. Air-insulated transformers in the 10 MVA to 100 MVA range are suitable for modernizing power grids in urban and industrial areas.
   
• Large industries, such as steel mills, mining operations, chemical plants, and large factories, require high-power transformers for their operations. Air-insulated transformers in this range (100 MVA to 600 MVA) are crucial in providing power to energy-intensive industrial processes.
   
• Technological advancements in transformer design and materials, including superconducting materials and advanced cooling systems, have enabled the creation of air-insulated transformers capable of handling capacities over 600 MVA. These advancements make such transformers more efficient, reliable, and capable of supporting the modern grid.
   
• The ongoing expansion of residential complexes, including apartment buildings and new housing developments, demands efficient voltage regulation. Air-insulated transformers are often used in these applications for easy integration into residential power distribution networks.
   
• The commercial and industrial sectors are increasingly adopting renewable energy sources such as solar, wind, and biomass to meet sustainability targets. Air-insulated transformers are used to step down voltage in these distributed renewable energy systems, allowing them to integrate seamlessly into the power grid.
   
• Utility companies are under increasing pressure to comply with environmental regulations regarding transformer oil and emissions. Air-insulated transformers, which are oil-free, are more environmentally friendly and offer a sustainable solution to meet regulatory requirements, particularly in eco-conscious regions.
   

• The U.S. air insulated transformer market has reached a value of USD 1 billion, USD 1.1 billion, and USD 1.2 billion in 2022, 2023, and 2024. The U.S. is accelerating its adoption of renewable energy, including solar, wind, and hydropower. Air-insulated transformers are widely used to step down voltage in distributed renewable energy systems, particularly in remote areas or at the point of generation to grid connections.
   
• Europe is investing heavily in smart grid technologies to improve energy efficiency and ensure the seamless integration of renewables. Air-insulated transformers are used in smart grids to provide voltage regulation, load management, and ensure the resilience of the electrical grid.
   
• The APAC region, particularly China and India, is leading the world in solar and wind energy deployment. Air-insulated transformers are essential for integrating renewable energy into the grid by stepping down voltage for local consumption or grid distribution. Solar farms and wind energy projects in countries like India, Australia, and Japan require transformers to stabilize voltage and facilitate connection to the grid.
   
• The MEA region, particularly Middle Eastern countries like Saudi Arabia, UAE, and Qatar, is rapidly expanding its energy infrastructure to meet the needs of growing populations and industrial activities. Air-insulated transformers are essential for managing voltage in these power systems, particularly in remote and desert areas where substation space is often limited.
   

Air Insulated Transformer Market Share

Leading manufacturers consisting of ABB, Siemens Energy, Schneider Electric, General Electric (GE) and Eaton holds over 30% of the market share. Companies with a bigger market share take greater responsibility on driving the market, defining the benchmarks of the industry, and set the level of aspiration of the customers. Leading companies in the commercial sector have abundant finances to funnel into research and product development as well as other technological innovations which enable the development of the air-insulated transformer market.
 

Such firms are also more enabled to strategically position their products so that they appeal to different markets such as commercial, residential, industrial, and utility markets which widens their scope of differentiation. The availability of such extensive portfolios, which includes high-voltage and medium-voltage air-insulated transformers, also increases their customer base for different market segments.
 

Air Insulated Transformer Market Companies

Some of the key market players operating across the air insulated transformer industry are:

• ABB
• ARTECHE
• Celme
• CG Power & Industrial Solutions
• DAIHEN Corporation
• Eaton
• Elsewedy Electric
• General Electric
• Hyosung Heavy Industries
• IMEFY GROUP
• Kirloskar Electric Company
• Mitsubishi Electric Corporation
• Ormazabal
• Pfiffner Group
• Schneider Electric
• Siemens Energy
• Toshiba International Corporation
• Trench Group
   
• ABB is one of the global leaders in electrical equipment and automation. It has a significant market share due to its diverse portfolio, including high-voltage transmission and medium-voltage distribution transformers. ABB also leads in digitalization and smart grid technologies that are crucial for modern electrical networks, giving it an edge in both developed and emerging markets. The company’s overall revenue in 2024, surpassed USD 32.8 billion, observing an annual increase of about 2% from 2023.
   
• Siemens Energy is a strong player in the energy sector and transformer manufacturing. They focus on renewable energy integration, high-voltage systems, and smart grid solutions. Their innovation in digital monitoring and predictive maintenance technologies in transformers solidifies their position as one of the top players in the market, especially in Europe and North America.
   
• Schneider Electric’s stronghold lies in energy management and automation. The company’s air-insulated transformers are used across a wide range of applications, including renewable energy integration, grid modernization, and smart cities. They are particularly strong in smart grid solutions and energy-efficient systems, with a well-established footprint in Europe, North America, and Asia-Pacific. The company reported net income of USD 4.62 billion in 2024.
   
• General Electric offers a wide range of power transmission solutions, including air-insulated transformers. They have a strong presence in high-voltage applications, serving utility and industrial sectors globally. Their involvement in smart grid systems, renewable energy projects, and substation solutions contributes to their market position, especially in North America and Asia-Pacific.
   
• Eaton provides a comprehensive range of medium and low-voltage air-insulated transformers for industrial and commercial applications. The company’s focus on energy efficiency and sustainable solutions makes it a preferred choice for customers in North America, Europe, and Asia-Pacific. Eaton has expanded its market presence through acquisitions and strategic partnerships, which has strengthened its position in various regions. The company spent over USD 1.3 billion for research & development in the FY2024.
   

Air Insulated Transformer Industry News

• In January 2025, ARTECHE expanded its presence in offshore wind farm projects, providing air-insulated transformers for power distribution systems in these remote and challenging environments. This aligns with global efforts to expand offshore wind energy production.
   
• In March 2025, Celme S.r.l released new compact, eco-friendly transformers designed for industrial applications. The company announced a new line of transformers that meet EU’s environmental standards for sustainable power equipment.
   
• In February 2025, CG Power launched an upgraded series of medium-voltage air-insulated transformers. The transformers feature enhanced predictive maintenance capabilities and remote monitoring technology to help utilities manage their grids more effectively.
   
• In January 2025, DAIHEN launched a new industrial transformer range designed for automated manufacturing and high-efficiency applications. The company focused on reducing energy losses and improving operational efficiency.
   

The air insulated transformer market research report includes in-depth coverage of the industry with estimates & forecast in terms of “’000 Units & USD Million” from 2021 to 2034 for the following segments:

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Market, By Winding

• Two winding
• Auto transformer

Market, By Rating

• ≤ 10 MVA
• > 10 MVA to ≤ 100 MVA
• > 100 MVA to ≤ 600 MVA
• > 600 MVA

Market, By Application

• Residential
• Commercial & industrial
• Utility

The above information has been provided for the following regions and countries:

• North America
  • U.S.
  • Canada
  • Mexico
• Europe
  • Germany
  • France
  • Russia
  • UK
  • Italy
• Asia Pacific
  • China
  • Japan
  • South Korea
  • India
  • Australia
• Middle East & Africa
  • Saudi Arabia
  • UAE
  • South Africa
• Latin America
  • Brazil
  • Argentina